Steve Wynn, the founder of Wynn Resorts (WYNN), bids adieu to the gambling company by selling his entire stake. This latest development is related to the controversy saga that started last month. On Wednesday, Wynn sold about 4.1 million shares for about $740 million and on Thursday, he sold his remaining 8 million shares through private transactions.
After his exit, Wynn resolved a dispute with his ex-wife Elaine Wynn lifting the previous limitations on her rights to sell her stake in Wynn Resorts. Elaine Wynn, who holds around 9% stake in Wynn Resorts, has not yet sold any of her shares.
Yet another interesting twist in this story is that Galaxy Entertainment Group Ltd. has acquired an approximate 5% stake in Wynn Resorts. Galaxy bought 5.3 million shares of Wynn Resorts for $927 million, generating an exciting opportunity to change the gaming industry landscape.
Wynn Resorts plans to use the proceeds from the Galaxy transaction to pay off an $800 million loan. After having a negative trend in the past two days, Wynn shares are pulling back during today’s morning session.
Over the coming months, operating licenses will be reviewed and handed out and the presence of Galaxy as a major shareholder will bode well for Wynn Resorts. The final adieu of Steve Wynn will perhaps put an end to the scandalous allegations and will most likely reduce its impact on the company.
Galaxy bought 5.3 million shares of Wynn Resorts for $927 million
Some expect that Galaxy could perhaps acquire Wynn Resorts in the long run. While Galaxy might not wish to acquire the entire Wynn Resorts entity, it could look at purchasing the assets of Wynn Macau, which would create a major gaming company, giving Galaxy a strong position in Macau.
The purchase of Galaxy’s stake in Wynn Resorts could also be part of efforts to reduce foreign dominance in Macau’s gaming industry. Galaxy plans to expand its footprint beyond Macau and the casino operator is looking to enter the Philippines as well as Japanese markets.